7-8-2024 (KUALA LUMPUR) The recent surge in the Malaysian ringgit’s value has done little to dampen Singaporeans’ enthusiasm for property investments in Johor. The southern Malaysian state continues to attract buyers seeking retirement homes, investment opportunities, and holiday retreats, despite currency fluctuations.
Stephanie Koh, a 45-year-old corporate solutions specialist from Singapore, exemplifies this trend. She recently purchased a spacious 2,659 square foot flat on the 40th floor of a Johor development, with plans to retire there. The property, which boasts views of Singapore’s northern coast, is nearly double the size of her current Singapore condominium.
“I factored in the ringgit’s volatility when deciding to buy,” Koh explained. “The market today is different from a decade ago. The ringgit’s value, combined with the upcoming Rapid Transit System (RTS) and the property’s inherent value, influenced our decision.”
The Malaysian currency experienced a significant uptick on Monday, jumping 2.3% against the US dollar—its largest single-day gain in nine years. This surge is attributed to growing optimism about Malaysia’s economic outlook and expectations of increased foreign investment.
However, the ringgit’s appreciation hasn’t deterred Singaporean buyers like Koh. Many cite Johor’s lower cost of living and the impending completion of the RTS link as primary motivators for their property purchases.
The RTS, a 4km rail shuttle service set to launch by December 2026, promises to reduce travel time between Johor Bahru and Singapore to a mere 15 minutes. This improved connectivity is a significant draw for potential buyers.
Another Singaporean investor, a 52-year-old private tutor who wished to be identified only as Tan, bought a 1,300 square foot unit in Johor last year. She views it as an attractive retirement option, noting, “In Singapore, retirement often means downsizing. Here, we can maintain our lifestyle without compromising on space or comfort.”
Property experts confirm this trend. Tan Tee Khoon, PropertyGuru’s Singapore country manager, reported a threefold increase in demand for Johor Bahru residential properties since October 2019. Nearly 44% of property seekers for Johor Bahru homes in April were Singaporeans.
However, industry insiders advise caution. Eve Ang, a property agent from ERA Real Estate Johor, warns of potential risks such as oversupply, maintenance issues, and possible policy changes affecting property values.
Faizul Ridzuan, CEO of Far Capital, noted that Johor developers are increasingly catering to foreign buyers, with recent launches priced well above what most Malaysians would pay. He attributes the renewed interest partly to improved infrastructure and safety in Johor compared to a decade ago.
Despite Malaysia’s political volatility, Faizul believes that the stark difference in living costs between Singapore and Johor remains the primary driver for Singaporean buyers. “The pressures of daily life and affordability in Singapore outweigh concerns about Malaysian politics for most investors,” he concluded.
